Bitcoin and Ether Plunge Over 5% Amid Silvergate Stock Fallout

Bitcoin and Ether Plunge Over 5% Amid Silvergate Stock Fallout

Time Stamp: March 3, 2023 4:06 AM
Bitcoin and Ether Plunge Over 5% Amid Silvergate Stock Fallout PlatoBlockchain Data Intelligence. Vertical Search. Ai.
  • Market Continues to Digest Silvergate as Bitcoin, Ether Drop Over 5%.
  • Most of the other top 10 cryptocurrencies by market cap experienced decreases.
  • The market capitalization of bitcoin dropped by nearly $20 billion to $431.9 billion.

The recent crash of Silvergate, a US-based bank that offers services to cryptocurrency exchanges and companies, has sent shockwaves through the crypto market. As a result, the price of Ethereum (ETH) dropped by 5%, impacting the broader cryptocurrency market.

Prior to the sharp drop, ETH had been on a slight uptick. However, during the eight hours leading up to the crash, a mysterious fund withdrew a massive amount of 312 million USD Coin (USDC) from Circle and transferred it to various exchanges. The timing of the transfer has raised questions about its connection to the Silvergate crash and its potential impact on the broader market.

The cryptocurrency market experienced a significant decline, with several top currencies, including Bitcoin SV (BSV), Filecoin (FIL), Ethereum (ETH), and Bitcoin (BTC), dropping by 4-18%. Within an hour, the total liquidation of the network surpassed $170 million, due in part to issues at Silvergate, according to experts. While other major exchanges like Binance and Bitfinex reported no similar problems, Coinbase allegedly suffered from connectivity issues during the sell-off.

CoinMarketCap reported a drop in the market capitalization of Bitcoin by almost $20 billion to $431.9 billion, with the total value of the cryptocurrency at $1.07 trillion. Interest in bitcoin futures decreased by 8.8% over the past four hours, while Ether’s open interest decreased by 5%. 

Additionally, Ruck identified the potential release of Mt. Gox’s bitcoin as another source of volatility that could increase the cryptocurrency’s available supply. Bitcoin and Ether both experienced price drops after remaining relatively stable the day before, with Bitcoin reaching an intraday low of $22,020 and Ether dropping from $1,650 to $1,550.

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